PURC to review cost of power for industry

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May 21, 2016 8:58 PM

In 2015 there was an increase of 59.2 percent and 67.2 percent for electricity and water respectively

Industry

Director of Tariffs and Regulatory Economics at the Public Utilities Regulatory Commission, PURC, has assured industry and the Association of Ghana Industries, specifically, that the PURC is taking necessary steps to address all their concerns in relation to the price of electricity.

Dr. Simon Akorli emphasized the PURC’s preparedness to address the challenge. He said, “ The PURC has taken note of the challenges and is taking steps necessary to address them. Since the tariffs were announced, late 2015, many challenges have been reported to us, which we have dealt with to the best of our abilities. I assure you that the concerns of industry will be addressed as well”.

AGI in their latest Business Barometer Report for the first quarter of 2016 identified the cost of power as one of the biggest constraints to businesses in the country, prompting a petition to the PURC for this to be addressed.

The Association of Ghana Industries has been pushing for the pricing formula that ensures that industry is charged more for power in order for cost of power to be subsidized for households.

Executive Director of ACEP, Dr. Mohammed Amin-Adam described this pricing policy as archaic. “ It is only in Ghana that industry pays more for power, while households are subsidized. All must be done to relief the burden of industry and not compound it. Industry must rather be prioritized in the pricing and supply of power.”

Meanwhile, Director of the Association of Ghana Industries, Seth Twum Akwaboah says Government must review the components in the pricing of electricity for industry, in order to reduce the price. “We can understand that cost of power is increasing and so must our bills. But government can revise the taxes and levies on power, in order to reduce the prices. That’s all we ask.”

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